Between 2017 and 2018, exports of milk and milk products fell 8%, and producers expect the downward trend to continue this year, because of the negative impact of the tax reform.

Figures from the Central Bank of Nicaragua show that between 2017 and 2018 exports of milk and milk products fell from $184 million to $167 million, and the volume traded fell from 85 million kilograms to 63 million kilograms.

Dos Pinos and Distribuidora Corripio invested $30 million in the construction of a plant that has an area of 8,500 square meters and a packaging capacity of 250,000 liters per day.

The Costa Rican Cooperative of Milk Producers Dos Pinos and Distribuidora Corripio, founded the Caribbean Dairy Group, being their first joint investment the construction of the new industrial plant, which will produce 50 varieties of dairy products, juices, nectars and soft drinks of the Dos Pinos and La Granja brands.

Between January and September of last year, trade in milk and dairy products between the countries of the region totaled $240 million, and more than 75% was bought by companies in El Salvador and Guatemala.

Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]

The barriers imposed by the Honduran and Panamanian markets, coupled with the negative effect of the recent tax reform, force Nicaraguan cattle ranchers to predict a bleak future.

Figures from the National Livestock Commission of Nicaragua (Conagan) specify that between 2017 and 2018 meat exports from Nicaragua fell by 7.9%, from $587 million to $541 million, and in the case of dairy, the fall was 8.4%, going down from $177 million to $162 million.

Between 2017 and 2018, milk sales from Costa Rica to Panama fell 24%, explained by increased competition, while exports to Guatemala and the Dominican Republic increased 21% and 13%, respectively.

According to figures from the Promotora del Comercio Exterior (Procomer), between 2017 and 2018 sales to Panama of milk and cream not concentrated and concentrated registered a 24% decline, falling from $7.5 million to $5.6 million. The main reason behind this behavior seems to be an increase in international competition in the Panamanian market.

Mexico's Lala invested $14 million in the purchase of high-tech machinery and the expansion of its dairy plant located in San Ramon, Alajuela province.

Managers of the Mexican company reported that the area of the facilities was expanded from 4,240 m2 to 24,250 m2, and with this expansion the company reaches a processing capacity in the country of 150 thousand liters of milk per day. The plant in question is the one that was purchased by Lala Group from Florida Bebidas in 2016.

Arguing that in Guatemala, milk from other countries in the region is being traded at a lower price than that sold in the countries of origin, producers in the country announce that they will submit a complaint.

The Representatives of the Chamber of Milk Producers of Guatemala announced that the complaint they are preparing will be filed with the Ministry of Economy, through the Directorate of Foreign Trade Administration (DACE).

A law was approved in Panama that allows the authorities to temporarily suspend imports of agricultural products for human consumption when local production is enough to meet demand.

The Congress approved Ley 680 project, which will allow the Ministry of Development to suspend imports of agricultural products for a period of 12 months. Among the products whose importation may be suspended are meat products and fluid milk.

The regional guild of the sector reported that the volume of milk produced by the countries of the region increased from 3.5 to 3.7 million metric tons between 2015 and 2016.

According to figures from the Central American guilds, the increase in global production registered in 2016, when the most updated statistics exist as a region, is explained by increases reported in all countries, mainly from Costa Rica with 18%, followed by El Salvador with 14%, Guatemala with 13%, Panama with 6%, and Honduras with 4%.

"Supply, transportation, delivery and on-site delivery of fortified milk for the National Complementary School Feeding Program by 2019. Specifically, semi-skimmed and fortified milk is required; semi-skimmed, flavored and fortified milk with vitamins and minerals, and omega 3 DHA. Each 8-ounce (236-240ml) container must include fresh fluid milk type A or B.

As a result of barriers imposed by El Salvador on dairy products from Nicaragua and the crisis in the country, in the first half of the year sales reports showed a year-on-year fall of 9%.

According to statistics from the Central Bank of Nicaragua (BCN) in the first six months of the year cheese exports totaled $54 million, 9% less than the $60 million recorded in the same period in 2017.

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